FORT LAUDERDALE, Fla., April 5 /PRNewswire-FirstCall/ -- AutoNation,
Inc. (NYSE: AN), America's largest automotive retailer, announced today the
pricing of $300.0 million aggregate principal amount of senior unsecured
fixed rate notes due 2014 at 7.00% and $300.0 million aggregate principal
amount of senior unsecured floating rate notes dues 2013. The floating rate
notes will bear interest equal to LIBOR plus 2.00% per year, adjusted
quarterly.
The Company intends to use the net proceeds from the offering, together
with bank financing and existing cash, to purchase 50 million shares of its
common stock at a price per share of $23.00 pursuant to its previously
announced common stock tender offer and up to $323.5 million of aggregate
principal amount of its 9% senior notes due 2008 pursuant to its previously
announced debt tender offer and consent solicitation. The bank financing is
expected to include a $600.0 million term loan and borrowings of
approximately $125.0 million under an amended revolving credit facility.
Subject to the satisfaction or waiver of certain conditions, the
Company expects to consummate the senior note offering, the equity tender
offer and the debt tender offer and consent solicitation on April 12, 2006.
About AutoNation, Inc.
AutoNation, Inc., headquartered in Fort Lauderdale, Fla., is America's
largest automotive retailer and a component of the Standard and Poor's 500
Index. AutoNation has approximately 27,000 full-time employees and owns and
operates 345 new vehicle franchises in 17 states.
The senior unsecured notes are being offered solely by means of a
confidential offering memorandum in a private placement to qualified
institutional buyers pursuant to Rule 144A under the Securities Act of
1933, as amended (the "Securities Act"), and to persons outside the United
States under Regulation S of the Securities Act. The senior unsecured notes
being offered have not been registered under the Securities Act or
securities laws of any state and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements under the Securities Act or the laws of any state. This press
release shall not constitute an offer to sell or a solicitation of an offer
to buy such senior unsecured notes and is issued pursuant to Rule 135c
under the Securities Act.
This press release is for informational purposes only and does not
constitute an offer to buy or the solicitation of an offer to sell shares
of AutoNation, Inc. common stock. The common stock tender offer is being
made only pursuant to the offer to purchase, letter of transmittal and
related materials that AutoNation distributed to its stockholders and filed
with the Securities and Exchange Commission on March 10, 2006. Stockholders
and investors should read carefully the offer to purchase, letter of
transmittal and related materials because they contain important
information, including the various terms of, and conditions to, the offer.
Stockholders and investors may obtain a free copy of the tender offer
statement on Schedule TO, the offer to purchase, letter of transmittal and
other documents that the Company has filed with the Securities and Exchange
Commission at the Commission's website at http://www.sec.gov or by calling
Innisfree M&A Incorporated, the information agent for the common stock
tender offer, toll- free at (877) 825-8631. Stockholders are urged to read
these materials prior to making any decision with respect to the common
stock tender offer.
In addition, this press release does not constitute an offer to buy or
the solicitation of an offer to sell AutoNation's 9% senior notes due 2008.
The debt tender offer and the consent solicitation are being made only
pursuant to the offer to purchase and consent solicitation statement,
letter of transmittal and consent and related materials that AutoNation
previously distributed to noteholders. Noteholders and investors should
read carefully the offer to purchase and consent solicitation statement,
letter of transmittal and consent and related materials because they
contain important information, including the various terms of, and
conditions to, the offer and the consent solicitation.
Certain statements and information included in this press release
constitute "forward-looking statements" within the meaning of the Federal
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
AutoNation to be materially different from any future results, performance
or achievements expressed or implied in such forward-looking statements.
Additional discussion of factors that could cause actual results to differ
materially from management's projections, estimates and expectations is
contained in AutoNation's SEC filings. AutoNation undertakes no duty to
update its forward-looking statements. Notwithstanding any statement in
this press release to the contrary, the safe harbor protections of the
Private Securities Litigation Reform Act of 1995 do not apply to statements
made in connection with a tender offer.
SOURCE AutoNation, Inc.
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CONTACT:
Marc Cannon, AutoNation, +1-954-769-3146, or
cannonm@autonation.com
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